Two power deals for renewable hydrogen electrolyser
Two separate purchase power agreements (PPAs) signed by Shell Energy Europe Limited, London, are set to secure much of the renewable electricity needed to power a hydrogen electrolyser being constructed at the Shell Energy and Chemicals Park Rheinland in Germany. Funded by the REFHYNE II(opens in new window) project, the electrolyser is expected to produce up to 44 tonnes of renewable hydrogen per day to partially decarbonise site operations.
Two agreements, one renewable goal
The two agreements were signed with German companies Nordsee One and Solarkraftwerk Halenbeck-Rohlsdorf. Under the five-year PPA with Nordsee One, Shell will offtake around a third of the output from the 332 MW wind farm Nordsee One constructed in the German North Sea. The 100 MW unit will generate renewable hydrogen to help decarbonise energy products – from transport fuels to chemicals – used across Europe. “This corporate PPA for carbon free electricity will deliver steady economic and environmental value for all its partners and show the potential for offshore wind to support the decarbonisation of the German industry,” states Till Frohloff, Managing Director of Nordsee One, in a news item(opens in new window) posted on the Shell website. Under the separate 10-year PPA with Solarkraftwerk Halenbeck-Rohlsdorf, Shell will offtake around 75 % of the power generated by a 230 MW solar project currently under construction in north-eastern Germany. The project consists of two nearly identical plants of 115 MW each. “The Halenbeck project shows that subsidy-free solar power production in Germany and its large-scale industrial use is a reality. Using this electricity to help produce hydrogen for the decarbonisation of fuels and chemical products is a huge step forward. It demonstrates once again that solar power has become a mainstay of Germany’s energy supply,” comments Karl-Heinz Remmers, co-CEO of Solarkraftwerk Halenbeck. “Through these renewable power agreements, we are bringing together our advanced trading capabilities and our Low Carbon Solutions expertise to decarbonise Shell’s operations and customer products with pioneering renewable hydrogen technology,” states Andy Beard, President of Hydrogen at Shell. “This is an exciting milestone in progressing the REFHYNE 2 project and showcases Shell’s strategy of delivering more value with less emissions.” Part of the power generated under the two PPAs will supply the REFHYNE II electrolyser when it begins operating in 2027. REFHYNE II is building on the lessons learned from REFHYNE I, in which Shell constructed one of the largest hydrogen proton exchange membrane (PEM) electrolysers in the world, with a peak capacity of 10 MW. Through REFHYNE II, the company is now building a 100 MW hydrogen PEM electrolyser, also at the Shell Energy and Chemicals Park Rheinland. The REFHYNE II (Clean Refinery Hydrogen for Europe II) electrolyser is expected to far exceed its predecessor’s production of 1 300 tonnes, reaching up to 16 000 tonnes of hydrogen per year. The electrolyser is scheduled to begin operating in 2027. For more information, please see: REFHYNE II project website(opens in new window)